GEO is Right On the Money
Three cheers, at least, are deserved for Grantmakers for Effective Organizations (GEO) new publication On the Money by Nancy Burd. You can download either the executive summary or full report from the website.
As summarized on the GEO website:
This publication highlights the financial challenges nonprofits face and the ways in which grantmakers are both improving the situation as well as perpetuating the problem.
The first section, Assessing the Problems, identifies five problem areas:
- Restrictions on Funding
- Misperceptions Around Sustainability and Growth
- “Too Many Masters”
- Onerous Grantmaking Practices
- Knowledge Gaps
The other sections discuss Barriers to Smarter Grantmaking and Ideas for Grantmakers.
It’s impressive how in 28 pages the author distills a variety of ideas, research, and practices about the realities of financial instability faced by nonprofits. The report also provides helpful and realistic suggestions for grantmaking organizations based on practices that have already been developed and implemented by foundations. The advice and guidance for funders is great, but this guidebook is a must read for everyone in our sector.
I’m pleased that GEO will be focusing on nonprofit finance and encouraging foundations to understand how “many prevailing approaches and practices in philanthropy can unwittingly create problems for the nonprofit sector.” Many nonprofits have experienced these unintended consequences and will welcome a dialogue on this topic.
However, nonprofit organizations also have a lot to learn from the report’s comprehensive overview of grantmaking. Misconceptions about the true cost of programs and capital needs apply equally (or more) at many nonprofits. We can’t expect a seismic shift in foundation practices and investment unless we nonprofit leaders understand and can effectively communicate what it takes to sustain ourselves.
Download this report, read it, and copy it for your board and senior staff.